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pashok25 [27]
3 years ago
9

JFS Co. constructed a new subdivision during 2020 and 2021 under contract with National Hoopla Company. Relevant data are summar

ized below: Contract amount $ 3,000,000 Cost in the year: 2020 1,200,000 2021 600,000 Cost to complete: 2020 1,000,000 2021 800,000 Contract billings: 2020 1,500,000 2021 1,500,000 JFS recognizes revenue upon completion of the contract. In its December 31, 2020, balance sheet, JFS would report: Multiple Choice The contract asset, deferred profit, of $400,000. The contract asset, contract amount in excess of billings, of $1,500,000. The contract asset, cost and profits in excess of billings, of $500,000. The contract liability, billings in excess of cost, of $300,000.
Business
1 answer:
timama [110]3 years ago
7 0

Answer:

The contract asset, cost and profits in excess of billings, of $500,000.

Explanation:

As JFS follows completion contract method, the following will be recognized in the books for December 31, 2020:

1. Cost to Complete -                        $1,000,000

2. Revenue (billings done in 2020) <u>$1,500,000</u>

3. Profit -                                             <u>$500,000</u>

Hence, the third option is correct

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Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart ha
katen-ka-za [31]

Answer and Explanation:

The computation is shown below:

a. The amount and the character of the gain or loss is

Sale value of the property $550,000

Less: (Purchase value - depreciation) $400,000

Total gain recognized $150,000

Ordinary income recapture is $100,000

remaining 1231 gain or loss $50,000

b.

Section 1231 Gain = $50,000

, Rate of tax on $100,000 i.e. 32% = $32000

Rate of tax on $50000 i.e. 15% = $7500

So,

The Total tax liability is

= $32,000 + $7,500

= $39,500

5 0
2 years ago
Which action is specifically recommended to enhance your credibility in the field of accounting?
LenaWriter [7]

Answer:

I'm pretty sure it's A, "complete a certification or qualification program offered by a professional association."

Explanation:

I believe this as it makes sense and I've had a question similar to this and got it right as the question and options where quite the same.

6 0
3 years ago
Read 2 more answers
Assume that Cane normally produces and sells 62,000 Betas and 82,000 Alphas per year. If Cane discontinues the Beta product line
Talja [164]

Answer:

Please find the complete question in the attachment.

Explanation:

\beta the margin of contribution unit= 130-25-22-17-14 \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ =52

\alpha Margin Contribution Unit = 90-10-21-7-10\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 42

8

Contribution losses =62000\times 42 \ \ \ \ \ \ \ \ \ \ \ \ = -2604000

Fixed cost avoidable =102000\times 20 \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 2040000

The margin of Alpha contributions =17000\times 52 \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =884000

Fiscal benefits (disadvantage)= 320000

3 0
3 years ago
Pretax accounting income for the year ended December 31, 2021, was $53 million for Truffles Company. Truffles' taxable income wa
Anuta_ua [19.1K]

Answer:

$17,820,000

Explanation:

The amount of tax due to government authorities for the current period is referred to as current portion of income tax expense. It is calculated by product of current or enacted tax rate and taxable income for the period

Taxable income for 2021 = $66million

Enacted or current tax rate for 2021 = 27%

Current portion of income tax expense for 2021 = Taxable income x current tax rate = $66 million x 27% = $17,820,000million

Hence Current portion of income tax expense = $18 million

4 0
3 years ago
On November 1, 2021, Aviation Training Corp. borrows $46,000 cash from Community Savings and Loan. Aviation Training signs a thr
emmainna [20.7K]

Answer:

<u>Record the issuance of note. </u>

November 1, 2021

Dr.   Cash                   46000

Cr.   Note Payable     46000

<u>Record the adjustment for interest.</u>

December 31, 2021

Dr.   Interest Expense    460

Cr.   Interest Payable     460

(46000*6%)*3/12 = 460

<u>Record the repayment of the note at maturity</u>

Dr.   Note Payable     46000

Dr.   Interest Payable     460

Dr.   Interest Expense    230

Cr.   Cash                    46,690

(46000*6%)*1/12 = 230

Explanation:

* At the year end the interest expense is accrued and recorded as interest payable.

4 0
3 years ago
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